Originally Posted by
dgcpaphd
"Every company on the face of the earth structures their PR statements this way." This is false. Even if it were true (but it isn't), according to what you wrote, it is ethical to mislead investors.
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Which is why AA and DL had nearly word-for-word identical press releases this quarter.
The "special charges" were relatively small this quarter. However, in prior quarters, the amounts were high and controversial.
So you admit that this issue has nothing to do with this quarter. Ok, thanks.
With respect to the hypothetical of Boeing granting UA a discount for the purchase on future planes, it would be a violation of GAAP to record the $7 million as an expense (if an agreement is in place for a discount or a type of reimbursement). Therefore, in your example, the $7 million shown as an expense would not be allowed under GAAP. By the way, the annual audited financial statements that are submitted to investors and to the SEC are based on GAAP.
Right. The point is we don't know at what point in the negotiations they are in, how much the comp was versus the true expense of the grounding (maybe grounding cost $20 mil and UA got $13 mil in discounts), etc.
So your question about why isn't UA suing Boeing is just nonsense.
No, grasping at the truth, accuracy and logic.
Hah. Tell you what. I will give you 100 to 1 bet that UA does not materially restate results from this quarter (for those playing along at home: materially restating quarterly results almost never happens in large public companies). Let's see you put your money where your mouth is.
Based on your responses and the apparent lack of understanding of my post, it is unlikely that you would understand if I furnished directions on how to arrive at this number. If you disagree with the number, so be it.
Explain to a simpleton like me how you arrived at $112 million in redemptions booked as income that are not offset by equivalent new mileage liabilities taken onto the books. I'm all ears.
We are obviously looking at UA's financial results from a different perspective. I was hoping for a civil exchange of ideas. When you respond in the manner you did, attempting communication with you is not encouraged.
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You're the one that came into the forum guns blazing announcing how sure you were that United was going to lose money this quarter.
1. They didn't
2. Your backpedaling and attempt to find some way to justify yourself just shows how wrong your prediction was.
We all make incorrect predictions. Just own up to it.